The global bioplastics market is forecast to surge from US$6.3bn in 2025 to US$15.6bn by 2035, according to new research by Future Markets Insights (FMI).
With a compound annual growth rate (CAGR) of 9.5%, the increase would be driven by global environmental priorities, sweeping regulatory changes and rising demand for sustainable materials across diverse industries, FMI said on a blog on 19 August.
The European Union (EU) led with a CAGR of 5.5%, reflecting strong policy and consumer demand for sustainable materials.
The US market was projected to grow at a CAGR of 5.2% in the period while Japan and South Korea were expected to grow at a rate of 4.3% and 4.9% respectively.
Key factors driving the increase included government regulations, with many countries introducing stringent anti-plastic regulations and promoting bioplastics through tax incentives and subsidies, the report said.
For example, the EU’s Single-Use Plastics Directive and bans in countries like India and China were driving the shift, the report said.
In addition, to align with sustainability targets to meet legal requirements and consumer expectations, eco-conscious companies were replacing petroleum-based plastics with biodegradable packaging.
According to the report, biodegradable plastics are becoming more affordable due to increased investment in biopolymer research and development (R&D), improved fermentation processes and scaled production capacities.
The global bio-based biodegradable plastic market was likely to continue developing in the next few years, with large companies choosing bio-based polymers made from renewable resources, such as sugarcane and vegetable oils, the report said.
“We anticipate an increasingly competitive market as prominent global manufacturers spend in R&D, expand production capacity and develop strategic partnerships to meet rising demand.”
